Staking/Yield bonding

In Spiral DAO, believe that the one who controls inflation — controls everything. This is why it is important for us to absorb new tokens the moment they are minted instead of using classic crypto bonds for token acquisition.

What's Yield Bonding?

To increase the market share within the CRV/BAL/FXS ecosystems, Spiral DAO has designed a new staking model that utilizes mechanisms similar to bonding, where the protocol distributes the native protocol tokens for some other tokens with a discount. For Spiral DAO yield farmers, the protocol mints an amount of SPR form proportionally higher in USD value than the rewards that could be obtained via existing protocols alone. This additional yield can be considered a "discount" for obtaining our native token.

Additional APY* for Staking is calculated with this formula in mind:

Additional yield = (SPR market cap / Treasury value - 1) * 0.4

So, for example, if SPR is a $15mln cap and Treasury is $10mln, the additional yield would be:

(15mln/10mln - 1) * 0.4 = 0.2

So in case the pool's own yield is 30%, Spiral DAO will provide with:

30 + 30 * 0.2 = 36%

of SPR yield.

Spiral DAO rates are updated daily.

Varying APY this way allows the DAO to increase SPR to Treasury backing ratio significantly.

This allows the Spiral DAO protocol to build up its Treasury and TVL through issuing and bonding SPR rewards backed by real yield, which the protocol can also utilize to generate additional value for SPR holders.

Yield bonding process visualization.

*The stated APY (the 'Rate') is denominated in terms of COIL/SPR, not USD or other fiat currency. The Rate is a forward-looking projection based on our good faith belief of how to reasonably project results over the relevant period, but such belief is subject to numerous assumptions, risks, and uncertainties (including smart contract security risks and third-party actions) which could result in a materially different (lower or higher) token-denominated APY. The Rate is not a promise, guarantee, or undertaking on the part of any person or group of persons, but depends entirely on the results of the operation of smart contracts and other autonomous systems (including third-party systems) and how third parties interact with those systems after the time of your deposit. Even if the Rate is achieved as projected, you may still suffer a financial loss in fiat-denominated terms if the fiat-denominated value of the relevant tokens (your deposit and any tokens allocated or distributed to you pursuant to the Rate) declines during the deposit period.